What are the maturity and redemption terms for the 2030 convertible notes?

Maturity – The notes are “Convertible Senior Notes due 2030,” meaning they mature in mid‑2020 – specifically on June 15, 2030 (the standard 10‑year maturity date for this series).

Redemption (call) terms – The notes are optional‑redemption securities.

- From June 15 2025 onward the company may redeem the notes at any time at a price equal to 100 % of the principal amount plus accrued interest (i.e., a “par‑plus‑interest” call).

- Before June 15 2025 the notes can be redeemed at the make‑whole price – the principal plus a premium that reflects the net present value of the remaining cash‑flow stream, effectively protecting investors from early redemption.

Trading implications

• Yield vs. Call risk – The 1.50 % coupon is modest for a 10‑year senior note, but the early‑call window (2025‑2028) caps upside because the notes can be redeemed at par. When the market price approaches the call‑price (par + accrued interest), the notes will likely be called, limiting further price appreciation.
  
• Convertible premium – As a convertible, the notes also carry upside if Pitney Bowes’ equity price rises above the conversion price. However, the callable feature means that if the stock underperforms, the notes will be called and investors will be forced back into cash, capping the upside and exposing them to reinvestment risk.
  
• Actionable stance – In a neutral‑to‑slightly‑bullish equity outlook for Pitney Bowes, a long‑convertible position can capture upside while still earning the 1.50 % coupon, but be prepared to sell or roll the position as the 2025 call window approaches and the note price converges to the redemption price. In a down‑trend scenario, consider shorting the convertible or selling the note before the call window to avoid being forced back into cash at par.